Complete Information on Terms and Conditions of an Open Tender of Commercial

Complete information on terms and conditions of an open tender of commercial

bids for long-term sales of Jet fuel RT grade of OJSC Naftan OR origin planned for December 12, 2017.

On December 12, 2017 CJSC Belarusian Oil Company (hereinafter - CJSCBNK, Tender Organizer) is holding an open tender of commercial bids for long term sale of Jet fuel RT grade of OJSC Naftan OR origin (hereinafter – the Tender):

Goods / Quantity, mt / Delivery period / Delivery basis
Jet fuel RT grade / Up to 5 000 tons monthly
(-/+10% of agreed monthly lot Seller’s option)
total quantity up to 30 000 tons
(-/+10% Seller’s option) / December
2017
-
May 2018 / DAP Republic of Belarus (except for deliveries to the territory of Ukraine, Moldova, transshipment in ports is not allowed, to be delivered to an internal railway station)

The delivery bases for a.m. oil products may be changed/specified before the tender date.

The tender is held with no price alteration or withdrawal opportunity of the submitted bid.

The tender is subject to deposit.

The terms of the Goods selling:

Tender Organizer: CJSC Belarusian Oil Company, the Republic of Belarus.

Seller: CJSC Belarusian Oil Company, the Republic of Belarus.

Buyer: the Applicant admitted as the Tender Winner

Producer: JSC Naftan OR.

The quality of the Goods to be sold:

· Jet fuel RT grade - in conformity with GOST 10227-86.

The shipment of each monthly Goods lot may be agreed in several steps: within the period from the 18th day of the month preceding the month of final price formation accepted for a definite agreed Goods lot till the 5th day (inclusive) of the month of final price formation accepted for a definite agreed Goods lot. At the same time the Buyer has no right to decline the final Goods volume in case of receiving the notification up to the 5th day (inclusive) of the month of the final price formation.

Should the Seller inform the Buyer on the volume of a definite agreed Goods lot after the 5th day of the month of the final price formation accepted for a definite Goods lot, the Buyer is entitled to reject the acceptance of the offered Goods volume by written notification to the Seller within 1 (one) business day from the information receipt. If such notification is submitted later than 1 (one) business day from the information receipt the additionally confirmed volume of Goods is deemed accepted.

No later than 1 (one) business day from the date when the preliminary EUR / USD (EURO / US Dollar) exchange rate is fixed the Seller and the Buyer sign a respective additional agreement to the contract stipulating the Goods delivery.

The date of invoicing is no later than 1 (one) business day from the date when the preliminary EUR / USD (EURO / US Dollar) exchange rate is fixed.

Currency of price calculation and payment: Euro

Terms of payment: 100% advance payment of the agreed monthly Goods lot within 2 (5 for the Ukrainian residents) banking days from the date of invoicing by the Seller.

Settlement procedure: the Buyer and the Seller effect payments through accounts and correspondent accounts in the European banks only (when the Goods are delivered to the countries of the Eurasian Economic Union – through the banks of the specified countries as per agreement with Financial Department of CJSC BNK).

Formula pricing on FCA basis is applied:

For Jet fuel RT grade:

The provisional price (Pr(P)) is calculated as follows:

Pr(P)=((Pl(P) +D)*1,1- k(P))/ K(P) EUR/USD, where

Pl(P) – average value of the basic quotations for the period from the 1st to 18th quotation day (inclusive) of the month preceding the month of the final price formation for the agreed Goods lot, given in USD per metric ton for the respective position as per quotations of «Platts» agency in its publication «Platts European Marketscan»;

D - the correction on FCA basis offered by the Buyer in the bid, in US dollars per metric ton;

k(P) – the correction calculated by the Seller and equal to the value of export customs duty for deliveries to the territory of the Eurasian Economic Union. For Goods deliveries not to the territory of the Eurasian Economic Union k(P) = 0. This value is equal to the export customs duty fixed in the Republic of Belarus for the date of concluding a respective additional agreement to the oil products supply contract.

K(P) EUR/USD – Euro/US Dollar foreign exchange rate of Bloomberg agency BFIX 14:00 Frankfurt available on the following link: http://www.bloomberg.com/markets/currencies/fxfixings

-for the volume (lot) of the Goods confirmed for delivery within the period up to the 18th day of the month preceding the month of the final price formation – on the 19th day of the month preceding the month of the final price formation for the agreed Goods lot;

-for the volume (lot) of the Goods confirmed for delivery within period after the 18th day of the month preceding the month of the final price formation – on the date following the date of confirmation the Goods for realization.

In the event that there is no rate quoted on such day the next following publication shall apply.

The final price (Pr(F)) of the Goods shall be calculated according to the following formula:

Variant I:

Pr(F) = (Pl(P) +D- k(F))/ K(P) EUR/USD +( Рl(F) - Рl(P))/ K(F) EUR/USD, where

Pl(P) – average value of the basic quotations for the period from the 1st to 18th quotation day (inclusive) of the month preceding the month of the final price formation for the agreed Goods lot, given in USD per metric ton for the respective position as per quotations of «Platts» agency in its publication «Platts European Marketscan»;

D - the correction on FCA basis offered by the Buyer in the bid, in US dollars per metric ton;

k(F) – the correction calculated by the Seller and equal to the value of export customs duty for deliveries to the territory of the Eurasian Economic Union. For Goods deliveries not to the territory of the Eurasian Economic Union k(F) =0. This value is equal to the export customs duty fixed in the Republic of Belarus for the date of the Goods shipment ex-refinery.

Рl(F) – the arithmetic average of basic quotations rounded to the second decimal place throughout all quotation days of the month of the final price formation for the respective position as per quotations of «Platts» agency in its publication «Platts European Marketscan» indicated while confirming a definite Goods lot, in USD per metric ton;

K(P) EUR/USD – Euro/US Dollar foreign exchange rate of Bloomberg agency BFIX 14:00 Frankfurt available on the following link: http://www.bloomberg.com/markets/currencies/fxfixings:

In the event that there is no rate quoted on such day the next following publication shall apply.

K(F) EUR/USD – Euro/US Dollar foreign exchange rate of Bloomberg agency BFIX 14:00 Frankfurt available on the following link: http://www.bloomberg.com/markets/currencies/fxfixings on the second quotation day following the final quotation day of the month of final price formation.

Variant II:

Pr(F)=(Рl(F) + D – k(F))/ K(F) EUR/USD, where

Рl(F) – the arithmetic average of basic quotations rounded to the second decimal place throughout all quotation days of the month of the final price formation for the Goods lot given in USD per metric ton for the respective position as per quotations of «Platts» agency in its publication «Platts European Marketscan»;

D - the correction on FCA basis offered by the Buyer in the bid, in US dollars per metric ton;

k(F) – the correction calculated by the Seller and equal to the value of export customs duty for deliveries to the territory of the Eurasian Economic Union. For Goods deliveries not to the territory of the Eurasian Economic Union k(F)=0. This value is equal to the export customs duty fixed in the Republic of Belarus for the date of the Goods shipment ex-refinery.

K(F) EUR/USD – the average value of Euro/US Dollar foreign exchange rates of Bloomberg agency BFIX 14:00 Frankfurt available on the following link: http://www.bloomberg.com/markets/currencies/fxfixings throughout all days of the month of the final price formation when exchange rates are published.

In case of the Seller’s confirmation of the volume (lot) of the Goods made during the period up to the last day (inclusive) of the month preceding the month of the final price formation in respect of a definite agreed Goods lot, the Buyer is entitled to choose the variant of final price calculation until the 1st day of the month of the final price formation in respect of a definite agreed Goods lot by sending to the Seller a respective notice. In case this information is not submitted the Seller shall apply the formula variant that was applied for final price calculation of the last confirmed lot of the Goods of the previous month of final price calculation.

In case of the Seller’s confirmation of the volume (lot) of the Goods made within the period starting with the 1st day of the month of the final price formation in respect of a definite agreed Goods lot the Buyer is entitled to choose the variant of final price calculation until the moment of Euro/US Dollar FOREIGN EXCHANGE REFERENCE RATE publication made by Bloomberg agency on its web site (K(P) EUR/USD) on the date following the date of confirmation the Goods for realization, by sending to the Seller a respective notice. In case this information is not submitted the Seller shall apply the formula variant that was applied for final price calculation of the last confirmed lot of the Goods of the previous month of final price calculation.

For the first delivery under the Contract the Buyer is entitled to choose the variant of final price calculation until the 1st day of the month of the final price formation by sending to the Seller a respective notice. In case of the Seller’s confirmation of the volume (lot) of the Goods made within the period starting with the 1st day of the month of the final price formation the Buyer is entitled to choose the variant of final price calculation until the moment of Euro/US Dollar FOREIGN EXCHANGE REFERENCE RATE publication made by Bloomberg agency on www.bloomberg.com (K(P) EUR/USD) on the date following the date of confirmation the Goods for realization, by sending to the Seller a respective notice. In case this information is not submitted within the stipulated period the Seller shall apply the second formula variant of the final price calculation.

Basic quotations are an arithmetic average of the average quotations of a quotation day rounded to the second decimal place

for Jet fuel RT grade are the quotations of «Platts» agency in its publication «Platts European Marketscan for the for the position «Jet» published under the title «Cargoes CIF NWE/Basis ARA» and «Barges FOB Rotterdam»;

The final price of the 1st monthly agreed Goods lot is calculated throughout all quotation days of December 2017 (estimated period of shipment – December 2017 – January 2018);

……………

The final price of the 6th monthly agreed Goods lot shall be calculated throughout all quotation days of May 2018 (estimated period of shipment – May– June 2018);

Conditions for admittance to participate in the tender:

Application

To take part in the tender the applicant shall submit to CJSC Belarusian Oil Company an application stating the planned Goods volume to be purchased not later than
December 11, 2017. On the basis of the Goods volume to be purchased, the amount of the bidding deposit shall be calculated. It is also essential to provide details necessary to conclude Tender Participation agreement. It is highly recommended to send the application written on the company’s letterhead.

Documents:

To participate in the Tender of commercial bids, the bidder shall provide CJSC Belarusian Oil Company not later than December 11, 2017a package of constituent and statutory documents, which shall include:

∙ Charter (Memorandum of Association);

∙ Certificate of Registration;

∙ An extract from the Trade register of the bidder's country of incorporation or other equivalent evidence of the legal status and legal capacity of the entity recognized as such by the legislation of the country of incorporation (hereinafter - the Extract). The Extract shall be issued not later than 6 months before the date of the Tender;

Power of attorney confirming the power of a natural person to submit, on behalf of the bidder, a commercial bid, in case the bid is signed by a person not specified in the Extract. The power of attorney shall be signed by an authorized person.

Documents shall be provided in print format, certified by a competent authority of the bidder country of incorporation (consular legalization, apostille, notarization - as applicable), translated into Russian, the translation shall be certified in accordance with the established procedure.

Should the Applicant fail to submit a package of documents in hard copy by the date of the Tender, such Company may be admitted to the Tender provided that the Tender organizer receives scanned copies of the package of documents in compliance with the required form, with obligatory subsequent submission of the documents in hard copy before the date of the official bidding results summarizing. The Tender organizer has the right not to consider for the purpose of the Tender, the bid of the Applicant that did not submit specified documents within the established time limit, and not allow such a company to participate in subsequent Tenders held by JSC Belarusian Oil Company.